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IRS issues instructions for new Form 990

WASHINGTON (8/21/08)--The Internal Revenue Service (IRS) Tuesday released revised instructions that will be needed by tax-exempt organizations to fill out the tax agency’s redesigned Form 990. The new IRS form, Return of Organization Exempt from Income Tax, is effective for the 2008 tax year, for returns filed in 2009. State-chartered credit unions are required to file Form 990 with the IRS annually, although a few states still permit group 990 filings. Federal credit unions are not required to file, since they are not subject to unrelated business income taxes. The new instructions are more comprehensive than earlier ones and have been modified to reflect the new format of Form 990. The Credit Union National Association is currently executing an in-depth review of the instructions to see how they will affect credit unions. CUNA had expressed concern about that the changes to the instructions for filing the IRS form when they were proposed. CUNA warned the new form, when used to report the pay of executives at state-chartered credit unions, could result in filers reporting "inflated figures" that do not reflect true compensation. Use the resource link below to access the IRS instructions.